This article discusses a QLD duplex strata fixtures insurance checklist and what is covered by strata versus contents insurance.
Question: So we know we are insuring our QLD duplex for the right amount, is there a fixture and fittings checklist we can use?
Is there a Qld-specific checklist for the fixtures and fittings in our duplex? The common items are the fences, common wall and wiring and plumbing. I have had no support from our previous or current insurer, who have both directed me to their PDS and the PDS directs me to the legislation, which does not have any type of checklist.
We require this information so we have confidence in the amount we insure the building for and how much we need for our individual contents insurance.
Answer: There is a requirement that the property conducts an insurance rebuild valuation every 5 years.
The Body Corporate and Community Management (Small Schemes Module) Regulation 2020 requirements that the property conducts an insurance rebuild valuation every 5 years per the legislation – Section 119.
The basic principle is that if you pick the unit up and shake it anything that falls out is lot owners contents + temporary flooring such as carpet, blinds & curtains, appliances that are not permanently attached, and aircon units servicing an individual lot (QLD only). These items need to be insured by contents/landlord’s insurance.
Other permanent fixtures including but not limited to kitchen and bathroom cabinetry are covered by strata insurance subject to the policy terms, conditions and exclusions.
Lot owners should also have contents/landlords insurance to cover property not insured by the strata policy and liability within the lot and I always suggest lot owners add an extra say $10,000 contents cover on what they believe should be covered for any incidental items not considered as it might only cost say $50 for the extra piece of mind.
Applicable Legislation
119 Valuation for insurance purposes [SM, s 200]
- This section applies if, under this part, a body corporate must insure 1 or more buildings for full replacement value.
- The body corporate must, at least every 5 years, obtain an independent valuation stating the full replacement value of the building or buildings.
- The owner of each lot included in the community titles scheme is liable to pay a contribution levied by the body corporate for the cost of the valuation of the building or buildings that is proportionate to the amount of the premium for reinstatement insurance for the building or buildings for which the owner is liable under this part.
- The contribution that the owner of a lot is liable for may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund.
This post appears in the November 2022 edition of The QLD Strata Magazine.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.